VLRS - Volaris makes sustainable aviation fuel commitment

2023-06-15 06:36:45 ET

Volaris ( NYSE: VLRS ) announced a $50M investment agreement to accelerate the production of sustainable aviation fuel worldwide through the North American startup CleanJoule. The investment was made in conjunction Indigo Partners, GenZero, Cleanhill Partners, Frontier Airlines ( ULCC ), and Wizz Air ( OTCPK:WZZAF ).

As part of the consortium's investment, Volaris, Frontier Airlines, and Wizz Air have agreed to acquire a total of 90M gallons of sustainabke aviation fuel, with Volaris ( VLRS ) estimated to receive 30M gallons.

Volaris ( VLRS ) successfully conducted its first flight using a blend of sustainable aviation fuel in 2022.

"The development of sustainable fuel has made significant progress but still faces challenges, such as achieving competitive and cost-effective production volumes, especially for airlines operating under the low-cost model. That is why joining this investment is crucial to ensure the viability of our model and the sustainability of our business," noted Volaris CEO Enrique Beltranena.

Shares of Volaris ( VLRS ) are up 92% on a year-to-date basis.

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